Question

A company purchased new equipment for $53,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $2,300; sales tax paid $2,900; and installation cost, $3,300. The cost recorded for the equipment was:

Answer 1

Answer:

Total cost= $58,600

Explanation:

Giving the following information:

A company purchased new equipment for $53,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $2,300; sales tax paid $2,900; and installation cost, $3,300.

We will assume that the sales tax can be an exemption allowed by the state.

Total cost= 53,000 + 2,300 + 3,300= $58,600